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Markets to date: institutional interest brings bitcoin closer to new all-time high

Markets al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday on CriptoNoticias. If you want to have the information in advance, subscribe to the list here.

The first week of February was quite intense for the ecosystem around Bitcoin, largely due to the diffusion of the benefits that this financial system offers to corporations as a strategic reserve. Also the price of bitcoin registered a significant rebound that led it to again exceed the mark of USD 40,000 this Saturday, January 6, as CriptoNoticias reported.

The news focus on Bitcoin was the World.Now event, covered by this medium. At this event, held on February 3 and 4, MicroStrategy explained to the main executives of some 1,400 corporations what Bitcoin could represent for these organizations and its use as a store of value and as a hedge against inflation.

This Sunday the 7th, the price of BTC reflected a boom of 17.11% in the last 7 days. At the time of writing this article, the price stands at USD 39,146, after it climbed to USD 40,760 this Saturday for the second time this year.

The weight of the fundamental parameters of Bitcoin

While some analysts hold the thesis that the MicroStrategy event was a driver for the price Since the beginning of the week, the on-chain data of Bitcoin and other metrics showed bullish signs. This was pointed out by analyst Willy Woo, whose statements we reported in CriptoNoticias. Woo maintains that the profit-taking phase is over and that the price of BTC is pointing towards $ 56,000.

Parameters such as the BTC that increasingly leaves the exchanges, or The increase in active addresses of Bitcoin are healthy signs of the network that could influence the price support and momentum more than external events. When the CEO of Tesla decided to place the Bitcoin logo on his Twitter profile, on January 29, the first cryptocurrency registered a rebound. However, in the middle of a campaign in favor of Dogecoin, last Thursday Musk decided to remove the Bitcoin logo from his Twitter profile, which did not affect the rally in the price of BTC.

Corporate event of MicroStrategy

MicroStrategy is the public company with the largest investment in bitcoin as a strategic reserve asset. For this reason, the call attracted more than 2,000 managers. The event began with an interview by Michael Saylor, CEO of MicroStrategy, with Ross Stevens, CEO of Stoneridge and the financial group NYDIG. Stevens highlighted the relationship of bitcoin, the asset, with Bitcoin, the network. He called this an “open source monetary system”, on which a growing number of applications are deployed, and described what he called “the second chapter of Bitcoin.”

Saylor offered then three keys to a bitcoin-based corporate strategy, while MicroStrategy’s executive vice president and general counsel and other executives highlighted the main legal aspects to consider when investing bitcoin.

Michael Saylor (L) and Ross Stevens discussed the past, present and future of B itcoin as a financial alternative. Source: MicroStrategy.

The company shared with the attendees its Bitcoin Corporate Playbook or «Corporate Playbook on Bitcoin», while Phong Lee, MicroStrategy’s CFO and Jeremy Price, the firm’s senior vice president of financial analysis discussed the strategy they used for the bitcoinization of the organization.

Tweet Featured of the week

Although already several analysts had disproved a Bloomberg information about the high concentration of BTC in very few hands, this tweet from Glassnode co-founder Rafael Schultze-Kraft offers a good analysis of the distribution of bitcoin. Schultze-Kraft is co-founder and CTO of Glassnode and highlights that a Bitcoin address is not an “account”, as one user can control multiple addresses, and one address can contain funds from multiple users .

In an attractive graph, Glassnode shows that there are 22 million shrimp (holders of less than 1 BTC), 560 thousand crabs (between 1 and 10 BTC) and multiple species of underwater fauna such as octopuses, sharks, whales and even humpback whales (with more than 5,000 BTC). Glassnode’s classification considers exchanges and miners separately.

Auspicious week for bitcoin

Among the studies favorable to bitcoin reviewed by CriptoNoticias in the last week, stands out one published by Bloomberg, where Bloomberg’s chief commodities strategist, Mike McGlone, estimates that The minimum value of BTC for 2021 will be around USD 20,000 and could reach USD 50,000.

Another important study on the evolution of the price of bitcoin was published by the site of Seeking Alpha market analysis and commented on by CriptoNoticias. Based on the Elliott wave model, he predicts that the culmination of the bull run for bitcoin would correspond to a price of $ 150,000. According to the authors, the model has worked with some precision in previous bullish cycles.

On the other hand, CriptoNoticias reported that Bitcoin appears in a survey of the Japanese exchange bitFlyer applied in the United States as the fourth investment asset most selected by the three thousand participants, above gold. Stocks, real estate, and insurance and certificates of deposit lead the way. It is striking that Bitcoin, in the fourth rung, outperforms long-standing assets such as mutual funds, bonds, foreign currencies and commodities such as gold.

Impact of bitcoin on traditional investment portfolios

The inclusion of bitcoin in traditional portfolios is a topic of institutional investment that has been the subject of various studies commented on in CriptoNoticias. These, for example, include studies by Fidelity Digital Assets, and Ark Invest. This Sunday, CriptoNoticias commented on the analysis carried out by Ecoinometrics with compound portfolios with variable allocations of bitcoin, S&P 500 shares and gold.

Growth of the returns of the portfolios selected by Ecoinometrics. Source: Ecoinometrics.

The Ecoinometrics approach was to use 8 scenarios , combining various percentages of the three assets, to conclude that, when increasing the allocation of bitcoin in the portfolios, the returns increase , although it is necessary to apply rebalancing strategies to counteract volatility.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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